What is robo advice?

If you’re looking to protect and grow your money for the future, investing with a robo advisor could be just the thing to help you achieve your financial goals.

Robo advisors provide a low-cost, flexible and efficient alternative to the traditional wealth management industry. This is essential for families that know they want to grow their money, but are too busy juggling the competing priorities in their life.

As investing is personal, you’re more likely to reach your financial goals if your investments reflect you and your family’s needs.

This can be difficult to get right and can be a lot of pressure for those trying to save for their family’s future if you don’t have the right support.

How do robo advisors work?

By harnessing the power of technology, robo advisors automate parts of the investment process. Technology is used to reduce the complexity and lower the high costs often associated with wealth management.

We’ve created an algorithm that will match you to an investor profile in five minutes. All you need to do is answer a questionnaire on your attitude to risk – we’ll do the rest.

Once we know your investor profile, we can pair you with a portfolio that’s built and managed in-line with your appetite for risk. This portfolio is regularly rebalanced to ensure it meets the set requirements of your investor profile.

You can manage your investments online, whether on your computer or through your phone, which gives you the flexibility needed when raising a family.

3. Add funds to your account

Moneyfarm brings a human element to robo advice

Whilst the name ‘robo advisor’ suggests a bunch of robots are behind the scenes managing your money, that’s not the case at Moneyfarm.

At Moneyfarm, we blend the perfect mix of technology and human expertise, which is why we prefer the name ‘digital wealth manager’.

An algorithm matches you to an investor profile based on your attitude to risk, and the portfolios you invest in are built and managed by our investment experts. We also have a qualified team ready to answer your questions.

It’s not only important that your investments are hassle-free, but that you also know the people managing your money have your best interests at heart.

What our customers think

Why should you invest with a robo advisor?

You know you need to protect your money and grow it for the future, but feel locked out of the traditional wealth management industry by its high fees and complexity. Don’t worry, you’re not alone.

Financial services shouldn’t be reserved just for those that have the money to decode it. Financial security is important in an era when we’re getting older but saving less.

We’re proud to disrupt this traditional industry, by making low cost, efficient and transparent financial services an option for every family that needs it.

What are the advantages of investing with a robo advisor compared to DIY investing?

DIY investors enjoy the work that goes into analysing the markets and the thrill of trading. It takes time and skill to invest successfully for your future – especially when you include the extra capital you’ll need to trade regularly. If you’re going to do it, you have to do it right.

Whether it’s because you work in finance and want to switch off at home, are busy juggling a career with the school run, or are lacking some confidence, you might want a helping hand.

Just because you don’t want to spend all your free time managing your investments, shouldn’t mean you’re unable to protect and grow your money.

We believe investing for your future should be as simple and hassle-free as you want it to be.

Why investors choose robo advice instead of DIY

Simple

We strip out the complexity of the traditional wealth management industry, so you’re confident your investments will help you achieve your financial goals.

Clear fee structure

Flexibility

We invest in Exchange Traded Funds (ETFs), which means they can be bought and sold quickly. This adds flexibility to your portfolios and means you can get your money in five working days – for when life throws you a curveball.

How do robo advisors invest?

Whilst different robo advisors provide different levels of advice, most offer a discretionary service.

These investments portfolios are usually passive investments, which try to mirror
the performance of a market or investment. By their very nature, passive portfolios are more efficient to manage.

Moneyfarm invests in ETFs, which are low-cost, transparent and diversified.

ETFs are also easier to sell than mutual funds, which means portfolios are more flexible for our investors. With Moneyfarm, you can get your money out in seven working days with no extra charge. You never know when you’re going to need your rainy-day fund.

You know you want to protect and grow your money, but might be unsure how to get there. We join these dots for you by matching you to a portfolio designed for your investor profile.

We believe long-term investing can help you make the most of your money; not only do your investments have the scope to benefit from market movements for longer, but you can even benefit from compounding – which is when your returns earn their own return! This is said to be one of the most powerful forces when it comes to investing.

Whilst we’re confident in the suitability of our financial advice, you might not agree with the investor profile we match you with. If you have any questions, you can always speak to our investment consultants on the phone.

Is my money safe and secure with a robo advisor?

Investing is all about managing risk and return; the more risk you take, the higher your potential returns – but also the further your investments have to fall. No investment is ever completely risk free.

Whilst there is always some element of risk attached to investments, there are ways you can manage this risk to limit any losses. We adopt these techniques to manage the risk in your portfolio and get you closer to your goals.

All of our portfolios are managed with a long-term investment strategy, which means we focus on quality investments and avoid any knee-jerk reactions to short-term fluctuations in the market.

We believe our age is an advantage is the current market, but we know some investors may want reassurance that their money is secure in case anything unexpected happens to Moneyfarm.

We protect up to £50,000 of your money as part of the Financial Services Compensation Scheme. This means your money is secure, we really do want to help you achieve financial security.

By making an investment, your capital is at risk. The value of your Moneyfarm investment depends on market fluctuations outside of our control and you may get back less than you invest. Past performance is no indicator of future performance. The tax treatment of a Moneyfarm Stocks and Shares ISA and a Moneyfarm Pension depends on your individual circumstances and may be subject to change in the future. You should seek financial advice if you are unsure about investing.